In May, President Clinton practically anointed New Hampshire lawyer Christopher Gallagher as his Federal Deposit Insurance Corp. chairman. Today, Mr. Gallagher seems to be out of the running, in large part because of his outspoken criticism of the FDIC Improvement Act Of 1991. Here are some of his remarks before a House Banking subcommittee on May 11.

In January 1991, a group of New England businessmen met in Washington with the full New England congressional delegation. We explained that the New England credit crunch was real, that it had definable and predictable stages and progressions, that the ongoing, post-S&L bank examination process had curtailed lending to small business, and that its repressive format would stand in the way of lending to bank-dependent small business when loan demand returned to the marketplace.

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